Gray Media Completes $900 Million Offering of Secured Notes
Gray Media Completes Major Notes Offering
ATLANTA — Gray Media, Inc. (“Gray”) (NYSE: GTN) has now finalized a significant financial move, having closed its offering of $900 million in 9.625% senior secured second lien notes due in 2032. The completion of this offering marks an important milestone for the company, particularly as it seeks to bolster its financial standing in the industry.
Utilization of Proceeds
The net proceeds from the newly issued notes will be utilized effectively alongside the borrowings from Gray's revolving credit facility. Specifically, the funds will be allocated to redeem all of Gray's existing 7.000% senior notes due in 2027. This strategic move is designed to improve the company’s capital structure and deepen its commitment to financial stability.
Paying Down Debt
In addition to redeeming the senior notes, Gray plans to repay a portion of its term loan F, which is due in June 2029. With the net proceeds from the new notes, Gray has already repaid $402.5 million of this term loan, which has significantly reduced its outstanding balance to just $90 million. This proactive debt management demonstrates Gray's determination to strengthen its balance sheet.
Details of the Notes
The issued notes carry an interest rate of 9.625%, which will add value for investors, ensuring regular returns. Interest payments will be made semiannually, starting from January 15, 2026, aligning with the company's financial planning. These notes are expected to mature on July 15, 2032, providing a long-term investment opportunity for interested buyers.
Guarantees and Compliance
Notably, the notes are guaranteed on a senior secured second lien basis, meaning they are backed by both existing and future subsidiaries of Gray, which adds an extra layer of security for investors. However, it is important to note that the notes and related guarantees have not been registered under the Securities Act of 1933, indicating that they cannot be offered or sold in the United States without proper registration or an exemption.
Insights into Forward-Looking Statements
While Gray has made commendable strides with its recent offering, it is crucial to understand that some of the information presented may be considered forward-looking. These projections are based on the company's current expectations and could be influenced by various risks and market conditions that may affect actual outcomes.
Mitigating Risks
Gray acknowledges that there are inherent risks in executing these financial strategies. They remain committed to transparency, regularly updating stakeholders on any developments that may impact their financial standing. The company's quarterly and annual reports provide insights into their performance and management's perspective on future conditions.
Contact Information
For those seeking further information, Gray has made contact details readily available. Individuals can reach out to Jeffrey R. Gignac, Executive Vice President and Chief Financial Officer at 404-504-9828, or Kevin P. Latek, Executive Vice President and Chief Legal and Development Officer at 404-266-8333. These contacts are an excellent resource for inquiries regarding the recent offering and the company's overall financial strategy.
Frequently Asked Questions
What is the purpose of Gray's recent notes offering?
The offering is aimed at refinancing existing debt, including redeeming senior notes and repaying a portion of a term loan, to enhance financial stability.
What are the terms of the newly issued notes?
The notes have a principal amount of $900 million, an interest rate of 9.625%, and are set to mature in 2032.
How will the proceeds impact Gray's financial position?
By redeeming higher-rate debt and reducing its term loan balance, Gray aims to improve its capital structure and lower interest expenses.
Who can invest in the issued notes?
The notes are offered to qualified institutional buyers under Rule 144A and to buyers outside of the United States under Regulation S.
What is Gray Media's stock ticker?
Gray Media is publicly traded on the NYSE under the ticker symbols GTN and GTN-A.
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